Joint Operation Between RMDC Laghubitta and Sana Kisan Bikas Laghubitta Began

Joint Operation Between RMDC Laghubitta and Sana Kisan Bikas Laghubitta Began

July 10, 2023, 1:51 p.m.

Finance Minister Dr. Prakash Sharan Mahat stated that the merger of these two financial institutions will significantly increase investment in the rural agriculture sector when he announced the start of the Sana Kisan Bikas Laghubitta and RMDC Laghubitta joint operation.

Dr. Yubaraj Khatiwada, a former finance minister, spoke on the program and stated that the SKKBL now has sufficient capital to register as a development bank.

In the midst of an event held in Kathmandu, Sana Kisan Bikas Laghubitta and RMDC Laghubitta merged. Joint operations start on July 9.

Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL) has successfully merged with RMDC Laghubitta Bittiya Sanstha Limited (RMDC).

From Ashad 24, 2080 BS, the two businesses will begin combined transactions under the name "Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited."

sana kisan.jpg

On Jestha 24, 2080 BS, Nepal Rastra Bank (NRB) already gave the merger its final clearance. On Falgun 18, 2079 BS, the two wholesale microfinance organizations signed the final merger agreement.

The agenda for the merger has already been authorized by the firms at their respective annual general meetings, which were conducted on Chaitra 10, 2079 BS.

The merger agreement between these two businesses was previously signed on Bhadra 31, 2079 BS [September 16, 2022].

The merger agreement was signed by Bhupesh Chutkali and Umesh Lamshal on behalf of RMDC Laghubitta and Sana Kisan Bikas Laghubitta, respectively.

The merger's share swap ratio has been set at 100:87. This implies that each 100 shares of SKBBL and RMDC Laghubitta will turn into 100 and 87 shares of the new company, respectively, after the merger.

'Sana Kisan Laghubitta Bittiya Sanstha Limited' will be the name of the new corporation that results from the merger. Khem Bahadur Pathak will continue to serve as chairman, and Dr. Shivaram Prasad Koirala will serve as CEO.

SKBBL has a paid-up capital of Rs. 197.11 crores as of Chaitra's end in 2079 BS, whilst RMDC Laghubitta has a paid-up capital of Rs. 156.37 crores.

The swap ratio of 1:0.87 was approved by both firms' AGMs, which were held separately on the 10th Chaitra, per the special resolution voted by those meetings. Investors who now own 100 shares of RMDC Microfinance would consequently acquire 87 shares in the combined business. The merger has also been given final approval in accordance with the letter from the NRB, SEBON, and Office of the Registrar of Companies.

It has been decided on "Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited" as the name of the new firm that will be created as a result of the merger, and the integrated business will be run starting on 24th Ashad, 2080. On Bhadra 31, 2079, the corporations formally agreed to a Memorandum of Understanding (MoU).

SKBBL currently has a paid-up capital of Rs. 1.97 Arba, whereas RMDC has a paid-up capital of Rs. 1.56 Arba. After the merger, the total paid-up capital will be Rs. 3.33 Arba.

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